Optiva Inc (OPT) AI Stock Analysis

• Market Cap: C$9.68M
• Dividend Yield: N/A
• Average Volume (3M): 9.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 4.13%
• EPS Growth: -5.54%
• Country: CA
• Employees: 413
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): -0.60
• Shares Outstanding: 6,245,946
• 10 Day Avg. Volume: 6,061
• 30 Day Avg. Volume: 9,583
• PEG Ratio: -1.25
• Price to Book (P/B): -3.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -78.40
• Enterprise Value/Market Cap: 15.96
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: -5.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$1.50 ▼(-3.23%Downside)

Optiva Inc's overall score reflects significant financial challenges and valuation concerns, tempered by positive technical signals and strategic corporate initiatives. The company's innovative strides and market recognition provide some optimism, but financial instability remains a critical risk.

Optiva Inc Business Overview & Revenue Model

Company Description

Optiva Inc. provides cloud-native monetization and revenue management software to communication service providers (CSP) in Europe, the Middle East, Africa, North America, Latin America, the Caribbean, Asia, and the Pacific Rim. The company's monetization products enable real-time charging, rating, billing, product catalog, policy management, and customer care for any digital services of a CSP. Its solutions include Optiva Charging Engine, a convergent charging solution that helps CSPs to monetize platform; Optiva Business Support System Platform, an end-to-end cloud native converged charging and billing solutions on the private and public cloud; Policy Control, a data monetization for real-time applications, such as video streaming, interactive gaming, and voice over LTE; and Optiva Wholesale Billing, a cloud-based solution that provides converged settlement and accurate interconnect billing. The company also offers Optiva Payment solutions that include various payment methods, including voucher and voucher less payment and top-up solutions. The company was founded in 1999 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Optiva Inc generates revenue primarily through the sale of its cloud-native software solutions and services to telecommunications companies worldwide. The key revenue streams include software licensing fees, subscription-based models for its cloud services, and ongoing support and maintenance contracts. Additionally, the company may engage in significant partnerships with telecom operators to customize its solutions to specific market needs, driving further revenue. Optiva's focus on innovation and cloud technology adoption plays a crucial role in attracting clients and sustaining its revenue growth.

Optiva Inc Financial Statement Overview

Summary

Optiva Inc faces significant financial challenges, with declining revenue, persistent losses, negative equity, and high leverage. The company's financial instability is evident in its negative growth trends and profitability issues.

Income Statement

Optiva Inc's income statement reveals significant challenges with declining revenue and profitability. Revenue has decreased from $96.7M in 2019 to $47.1M in 2024, reflecting a negative growth trend. Gross profit margin has substantially dropped from 67.5% in 2019 to 57.9% in 2024. The company has struggled with consistent net losses, with net income falling from a loss of $11M in 2019 to a loss of $19.7M in 2024. EBIT and EBITDA margins are negative, indicating operational inefficiencies. The company's profit margins have been notably volatile, reflecting potential challenges in cost management and market competitiveness.

Balance Sheet

Optiva Inc's balance sheet indicates financial instability, characterized by negative stockholders' equity, which has worsened from -$35.6M in 2019 to -$56.7M in 2024. The company's debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $102.7M in 2024 suggests significant leverage. Return on Equity is also not meaningful due to negative equity, highlighting profitability challenges. The equity ratio is negative, indicating that liabilities exceed assets, posing a risk to financial health and sustainability.

Cash Flow

The cash flow analysis of Optiva Inc shows mixed performance. Operating cash flow has improved to a positive $415K in 2024 from a negative $3.25M in 2023, signifying some operational recovery. However, free cash flow remains low at $37K in 2024, indicating limited cash available for expansion or debt reduction. The operating cash flow to net income ratio is positive but not strong, reflecting ongoing profitability pressures. Overall, cash flow management remains an area for improvement to support long-term financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.08M	47.51M	61.78M	65.24M	75.92M
Gross Profit	27.25M	30.61M	44.59M	50.36M	56.31M
EBITDA	-8.21M	-239.00K	13.85M	33.08M	-20.16M
Net Income	-19.68M	-12.26M	709.00K	18.50M	-41.52M
Balance Sheet
Total Assets	70.14M	84.31M	86.62M	92.66M	77.38M
Cash, Cash Equivalents and Short-Term Investments	10.22M	19.64M	18.39M	29.59M	17.66M
Total Debt	102.70M	101.35M	87.72M	86.99M	86.34M
Total Liabilities	126.88M	123.60M	112.70M	127.72M	156.81M
Stockholders Equity	-56.74M	-39.29M	-26.08M	-35.06M	-79.43M
Cash Flow
Free Cash Flow	37.00K	-3.64M	-1.09M	1.59M	-7.90M
Operating Cash Flow	415.00K	-3.25M	-237.00K	2.65M	-7.90M
Investing Cash Flow	-428.00K	760.00K	-2.01M	-1.22M	325.60K
Financing Cash Flow	-10.10M	3.95M	-8.78M	10.89M	-7.52M

Optiva Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OPT, the sentiment is Neutral. The current price of 1.55 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.21, and below the 200-day MA of 3.07, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 31.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:OPT.

Optiva Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	£571.22M	24.42	-6.00%	2.36%	3.52%	-29.29%
EONX	52 Neutral	C$15.98M	―	20.16%	―	79.84%	70.95%
OPT	50 Neutral	C$9.68M	―	36.35%	―	4.13%	-5.54%
NBVA	45 Neutral	C$7.72M	220.00	0.79%	―	-74.44%	―
PKK	36 Underperform	C$5.57M	―	-224.98%	―	-85.42%	51.62%
VENZF		$2.94M	―	-330.27%	―	―	―
FOBIF		$6.56M	―		―	―	―

Optiva Inc Corporate Events

Optiva Inc. Strengthens Board and Reappoints Auditor at Annual Meeting

Optiva Inc. announced the election of six directors to its board and the reappointment of KPMG LLP as its auditor at its annual meeting. These decisions are expected to strengthen the company’s governance and financial oversight, potentially enhancing its strategic positioning in the telecom industry.

Optiva Inc. Addresses Unexplained Market Activity

Optiva Inc. has addressed recent market activity, confirming that it is unaware of any undisclosed information that would explain the increase in its stock price and trading volume. This announcement aims to reassure stakeholders and maintain transparency amidst the fluctuations in its market performance.

Optiva Inc. Wins MVNOs World AI & Analytics Excellence Award for AI-Driven BSS Platform

Optiva Inc. has been awarded the MVNOs World AI & Analytics Excellence Award for its AI-driven BSS platform, which is powered by Google’s Gemini Models. The platform is recognized for empowering MVNEs and MVNOs to launch and configure eSIM enablement and advanced product catalogs swiftly. This award highlights Optiva’s innovative partnerships and its role in enhancing agility, scalability, and customer-centric offerings in the competitive telecom market. The platform’s AI capabilities, such as churn prediction and dynamic pricing, allow operators to accelerate time-to-market and optimize growth strategies, ultimately improving customer experience and operational efficiency.

Optiva Unveils Dynamic Pricing Solution to Revolutionize Telecom Monetization

Optiva Inc., in collaboration with PlektonLabs and Qeema, announced the INFINITY project, which will be showcased at DTW25 Ignite. This project introduces a dynamic pricing solution that allows telecom operators to adapt pricing in real-time based on network utilization and customer demand, thereby unlocking new revenue streams and optimizing network capacity. By leveraging APIs and AI-driven tools, INFINITY aims to transform telecom monetization, enabling operators to move beyond static pricing models and capitalize on advanced network features. This initiative is expected to enhance operators’ ability to meet evolving customer expectations and improve profitability.

Optiva Inc. Announces Q1 2025 Financial Results and Strategic Initiatives

Optiva Inc. reported its first quarter 2025 financial results, highlighting a revenue of $11.6 million and a gross margin of 64%. The company secured $6.3 million in total contract value bookings and introduced agentic AI technology, powered by Google’s Gemini models, into its BSS and charging solutions. This integration aims to improve operational efficiency and customer experience, earning industry recognition. Optiva is also navigating strategic alternatives concerning its outstanding Secured Notes, with key stakeholders committed to supporting the company through this process.